Lemon Tree Hotels Plans to Invest INR 850 Cr in the Next Three Years

Vikramjit Singh, President of Lemon Tree Hotels, said in a recent report that the company has earmarked a total of INR 1,700 cr for adding 1,500 rooms, which are currently under construction and expected to be completed by the financial year 2021 and spent half of the total budget.

ACCORDING TO a recent report, Lemon Tree Hotels Ltd announced that it will be investing INR 850 cr in the next three years for expanding its footprint in the country. Vikramjit Singh, President of Lemon Tree Hotels, said they have earmarked a total of INR 1,700 cr for adding 1,500 rooms, which are currently under construction and expected to be completed by the financial year 2021 and spent half of the total budget.

"The total capital that will be deployed in these 1,500 rooms will about INR 1,700 Cr. Of this roughly half of it has already been deployed and another half of it will be deployed near completion by FY21. All the 1500 rooms will be available by FY21," said Singh.

The hotel chain presently operates 4,907 rooms in 49 hotels including managed ones across 31 cities and aims to operate 78 hotels with 8,152 rooms in 54 cities by 2020-21. He further said 64 percent of Lemon Tree's rooms are company-owned, while the rest are owned by others and managed by the company.

It also plans to gradually reduce the proportion of hotels it owns and focus more on managing hotels under its brand.